Free Post Earnings Research Report: J. M. Smucker’s Quarterly Earnings Advanced 25%

Stock Monitor: Conagra Brands Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 29, 2018 / Active-Investors.com has just released a free earnings report on The J. M. Smucker Co. (NYSE: SJM) (“SJM”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SJM. The Company reported its financial results on February 16, 2018, for the third quarter of the fiscal year 2018, ending January 31, 2018. The Company had a strong third quarter, with sales growth for key brands in every business and a strong earnings per share (EPS) growth, led by the benefits of US income tax reform and ongoing cost discipline. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Conagra Brands, Inc. (NYSE: CAG), which also belongs to the Consumer Goods sector as the Company J. M. Smucker. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The J. M. Smucker most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SJM

Earnings Highlights and Summary

For Q3 FY18, SJM’s total sales reached $1.9 billion, up 1.3% from $1.88 billion in Q3 FY17. In the quarter under review, sales improved 1% on a constant currency basis owing to growth across most of the Company’s key brands and categories. The Company’s revenue numbers surpassed analysts’ consensus estimates of $1.89 billion.

During Q3 FY18, SJM’s cost of products sold was $1.17 billion, an increment of 1.64% y-o-y. The Company’s gross profit advanced 0.77% to $728.5 million in Q3 FY18 from $722.9 million in Q3 FY17. The gross margin improved 0.2% to 38.28% in the quarter ended January 31, 2018, compared to 38.48% in the same period of last year.

SJM’s selling, distribution, and administrative expenses dipped 1.57% to $331.9 million on a y-o-y basis in Q3 FY18. SJM’s operating income was $162.7 million in the reported quarter, 31.55% lower than $237.7 million in the year ago comparable quarter. The Company’s operating margin fell 4.1% to 8.55% in Q3 FY18 from 12.65% in Q3 FY17.

SJM generated a net income of $831.3 million in Q3 FY18 compared to $134.6 million in Q3 FY17, reflecting an increase of 517.61%. The Company’s diluted EPS was $7.32 in the quarter under review, around 6.31 times the diluted EPS of $1.16 in the year earlier corresponding quarter. The results included amortization, impairment charges, unallocated derivative losses, and special project costs. It also included the impact of an income tax benefit due to the recent US Tax Cuts and Jobs Act 2017 (TCJA). The Company’s non-GAAP net income, after adjusting for non-recurring items, was $283.7 million in Q3 FY18, an increase of 21.86% from $232.8 million in Q3 FY17. The Company’s adjusted diluted EPS also advanced 25% to $2.5 in the quarter under review from $2.0 in Q3 FY17, and were higher than analysts’ consensus estimates of $2.16.

Segment Details

During Q3 FY18, SJM’s US Retail Coffee segment generated net revenues of $550.5 million, an increase of 2.40% y-o-y, mainly driven by Dunkin’ Donuts® K-Cup® pods and the Café Bustelo® brand. The segment’s profit advanced 5.75% to $182.1 million in the reported quarter from $172.2 million in year ago same quarter.

For Q3 FY18, SJM’s US Retail Consumer Foods segment generated net revenues of $511.6 million, a decrease of 1.1% from the year ago comparable quarter, mainly due to a decline of the volume/mix of the Crisco® and Pillsbury® brands. The segment’s profit was $121.3 million in Q3 FY18 compared to $119.2 million in Q3 FY17, reflecting an increase of 1.76%.

SJM’s US Retail Pet Foods segment reported net revenues of $561.9 million in Q3 FY18, an increase of 2% y-o-y, driven by the Nature’s Recipe® brand and gains in the Company’s pet snacks portfolio. The segment’s profit fell 6.57% to $118 million in Q3 FY18 from $126.3 million in Q3 FY17.

SJM’s International and Away From Home segment’s net revenues were $279.3 million in Q3 FY18, an increase of 2.31% y-o-y, due to a favorable foreign currency exchange and an increased performance of the Jif® and Smucker’s® brands. The segment reported a profit of $52.6 million in the reported quarter, up 15.6% from $45.5 million in the previous year’s corresponding quarter.

Cash Matters

SJM had cash and cash equivalents of $186.2 million as on January 31, 2018, a decrease of 11.36% from $166.8 million as on April 30, 2017. The Company’s long-term debt increased 5.47% to $4.69 billion as on January 31, 2018, from $4.45 billion as on April 30, 2017.

SJM’s cash flow from operating activities was $469 million for the three months ending January 31, 2018, up 11.80% from $419.5 million in Q3 FY17. The Company had a free cash flow of $388.7 million in Q3 FY18 compared to $366.9 million in Q3 FY17.

SJM spent $80.3 million on purchases of property, plant, and equipment in Q3 FY18 compared to $52.6 million in Q3 FY17. The Company paid quarterly dividends of $88 million in the reported quarter, 0.92% higher than $87.2 million in the previous year’s same quarter.

Outlook

SJM updated its guidance for the full fiscal year 2018. The Company expects its adjusted EPS to range between $8.20 and $8.30 in FY18, up from the previous guidance of $7.75 – $7.90. The Company anticipates a free cash flow of $825 million and capital expenditure of $310 million in FY18.

Stock Performance Snapshot

March 28, 2018 – At Wednesday’s closing bell, The J. M. Smucker’s stock was slightly up 0.73%, ending the trading session at $123.30.

Volume traded for the day: 982.21 thousand shares.

Stock performance in the previous six-month period – up 16.23%

After yesterday’s close, The J. M. Smucker’s market cap was at $13.95 billion.

Price to Earnings (P/E) ratio was at 6.89.

The stock has a dividend yield of 2.53%.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.6% at the end of the session.

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